Merkel hints at future 'haircut' on Greek debt

German Chancellor Angela Merkel admitted Sunday that governments will likely have to take a loss on the Greek debt they own, breaking what was considered a taboo in German politics.

Choosing the influential mass-selling tabloid Bild am Sonntag to make the admission, Merkel said in two years time a "haircut" should be considered for Greece.

"If Greece one day again manages with its revenue without getting new debt, then we must look at and assess the situation," she said. "That is ...